The United States may have to return tens of billions of dollars in tariff money if the Supreme Court decides that President Donald Trump went beyond his powers in imposing wide-ranging import duties. Treasury Secretary Scott Bessent warned about this on Sunday.

Speaking on NBC’s Meet the Press, Bessent said, “We would have to give a refund on about half the tariffs, which would be terrible for the Treasury.” When asked if the government was ready to make those repayments, he admitted, “If the court says it, we’d have to do it,” though he expressed confidence that the Trump administration would win the case.

Two lower courts have already ruled that Trump did not have the authority to introduce such broad tariffs under the 1977 International Emergency Economic Powers Act (IEEPA). On August 29, the US Court of Appeals for the Federal Circuit found that Trump overstepped by imposing “reciprocal tariffs” on almost every country as part of his “liberation day” plan. The ruling has been put on hold until October 14 to allow an appeal. Trump has now asked the Supreme Court to take up the case in early November.

Since the new tariffs began in August, US Customs has collected over $70 billion, adding to the $180 billion in tariff revenue collected this year. If the legal fight continues until mid-2026 and the government loses, Bessent warned, refunds could reach between $750 billion and $1 trillion, which would cause major problems for US finances.

He also admitted that losing the case would hurt Trump’s ability to negotiate trade deals. Still, he said there were other options, though he did not give details.

National Economic Council Director Kevin Hassett, speaking separately, says the government could use Section 232 of the Trade Expansion Act, which allows tariffs for national security reasons. Trump has already used this law to raise tariffs on steel and aluminum and has threatened new duties on semiconductors and medicines.

Some tariffs are not affected by the court case, including the removal of the rule that allowed imports under $800 to be tax-free.

The appeals court decision has created uncertainty around Trump’s trade agenda, which was designed to cover nearly 70% of all US imports. If the ruling stands, tariff coverage would drop to just 16%. Major companies like Nike, Hasbro, and Walmart have warned that tariffs raise prices for consumers, though the government denies this. In July alone, the US collected about $28 billion in customs duties.

Sanctions on Russian oil buyers

Bessent also said the US is ready to work with Europe on more sanctions against countries that continue to buy Russian oil. He argued that stronger measures could cause the Russian economy to collapse and force President Vladimir Putin to negotiate. Last month, the US imposed a 50% tariff on Indian oil imports because of its continued purchase of Russian crude.

His comments came after Russia carried out its largest air attack of the war on Ukraine, killing at least four people and damaging a government building in Kyiv. Ukrainian President Volodymyr Zelenskyy, speaking on ABC’s This Week, supported the idea of tariffs on countries still trading with Moscow.

Trump met Putin in Alaska last month and later hosted Zelenskyy and European leaders in Washington. However, ceasefire talks have since stalled as Russia continues its attacks. Trump has reportedly expressed doubts about ending the war soon.